My statement is reconciled but the balance sheet is off due to the commission fees charged by Square. How do I offset that amount in the balance sheet

I'll be taking care of your concern today to offset the amount on your Balance Sheet report, @marydifabio2.

The best way we can fix the differences in your report is to use the Resolve Difference feature when matching your transactions. This process helps match your transactions specifically with charges by resolving differences until it zeros out. That said, we need to undo the reconciliation to correct the amount, then delete the expense recorded for the commission charged.

To undo your reconciliation, follow the steps provided in this article under Step 2: Undo and remove transactions from reconciliations in QuickBooks Online. To delete the expense transactions, open it and tap on Delete from the More button.

Once completed, proceed with resolving the difference when matching your Square transaction from the Banking page.

1. Open your QuickBooks Online account, then click on Banking at the left pane.
2. Go to the Banking page, then select the payment transaction under the For Review column.
3. Select the Find other records or Find match button to open the Match transactions window.
4. By default, the Match transactions window lists All transactions within the date range, but you can narrow the results.
   • Use options on the Show drop-down menu to specify the type of transaction you're looking for.
   • If the transaction you're looking for is outside the default date range, select the From and To date fields to change the dates 
5. If the amounts are different, you can locate additional matched transactions, or select Resolve Difference to open the Add resolving transactions fields.
6. Enter the exact amount to zero out the difference in the Amount column.
7. Add the Category and Amount (and, optionally, Payee) of a resolving transaction until the difference equals zero.
8. Select Save.

To  learn more about this process, check out these articles about categorizing online banking transactions as well as entering an adjustment to resolve the difference in a match:

• Resolve the difference in a matched transaction
• Categorize and match online bank transactions in QuickBooks Online
• Why do I occasionally notice penny rounding differences?

Also, I have this helpful link that you can read more about banking in case you need references in the future.

This process should resolve the differences, @marydifabio2. If you have any other questions, mention me in the comment section below. I'm always here to help. Keep safe!